Tag: Labour

Welcome To the Vegetable Garden of Europe

It is estimated that about a hundred thousand migrants work in the greenhouses, scattered throughout the area. Credit: Floris Cup/IPS
  • by Floris Cup, Arnaud De Decker (almeria, spain)
  • Inter Press Service

ALMERIA, Spain, Feb 24 (IPS) – Chances are that the fruits and vegetables sold in European supermarkets have been picked and packed by a migrant worker in southern Spain. By the tens of thousands, they work there, in sweltering hot plastic greenhouses – often underpaid and without residence permit – in the vegetable garden of Europe. “Cheap vegetables, yes. But at what price?”

It is a sunny Saturday afternoon, warm and dry, when we leave the city of Almería, in the southern province of Andalusia, to drive towards the countryside. Leaving the freeway, the lane narrows and turns into a dirt road. The hot desert breeze blows a dusty, brown cloud of sand into the air that completely covers the car in no time. We take a slight turn and drive past impressive mountain ranges.

After ten minutes of driving, in the shadow of a series of imposing rocks, a sea of white plastic appears before us, stretching as far as the eye can see, before merging into the Mediterranean Sea. Thousands of greenhouses are neatly arranged in endless straight rows that turn the arid landscape pale. In all, the greenhouses cover an area 30,000 hectares, visible from outer space. 

We park the car along the road near the village of Barraquente, a thirty-minute drive east of Almería, and head out into the hot desert. A day earlier we got word of a slum, a “barrio de chabolas”, around here. Undocumented workers picking fruits and vegetables in the greenhouses and working the fields for meager wages are said to have built semi-permanent homes with scrap metal over the years.

Lethal cocktail

Since Spain joined the European Economic Community, the forerunner of the European Union, in the 1980s, agriculture in the province of Andalusia became increasingly intensified and industrialized. Small farms gave way to agricultural giants as monoculture gradually became the norm and has since then become a very lucrative business, with a total annual export value of twelve billion euros worth of agricultural products, destined for the entire European market.

To meet the ever-growing demand for fruits and vegetables from the rest of Europe, more and more hands are needed in the fields. And although Andalusia is one of the country’s poorest regions, with sky-high unemployment rates, it is mostly underpaid undocumented migrants who perform the ungrateful jobs. Temperatures in the greenhouses soar above 45 degrees Celsius in the summer, drinking water is scarce and, combined with the intensive use of pesticides, the work on that southern outskirt of Europe forms a deadly cocktail.

Estimates vary, but according to union representative José García Cueves, about a hundred thousand migrants work in the greenhouses, scattered throughout the area. Along with his wife, José García represents union SOC SAT, the only organization that exposes and represents the interests of the victims of exploitation in the greenhouses around Almería.

Flat tires

“Spaniards prefer to leave those jobs for migrant workers. They come from North and West Africa, from countries like Morocco, Senegal, Guinea or Nigeria, and in most cases they don’t have residence permits, making them easy targets for the local greengrocers,” he says from behind his cluttered office in an impoverished neighborhood of Almería.

Despite his noble mission, José is not loved by most Andalusians, quite the contrary. “The farmers could drink our blood. The tires of my car get regularly punctured and physical intimidation is also not exceptional.”

“Even the local authorities turn a blind eye to the region’s problems and challenges. All in the name of economic growth,” Garcia said. “Look, there are only 12 inspectors responsible for greenhouse inspections, and that’s in a vast area where you can drive around for hours without running into anyone. Do you think that’s realistic? Workers are reduced to expendable tools, overnight someone can lose their job.”

Thousands of greenhouses are neatly arranged in endless straight rows that turn the arid landscape pale. In all, the greenhouses cover an area 30,000 hectares, visible from outer space. Credit: Arnaud De Decker/IPS

Afraid of the sea

In the slum by the roadside, we speak with one of the workers, Richard, a 26-year-old man from Nigeria. Bathing in sweat, he arrives on his bicycle. His morning shift in the greenhouse is over and he takes us into the village. The sun is at its highest, it is scorching hot.

“The shifts start early in the morning, when the temperature is still bearable,” he points out. “By noon we are entitled to a break, because it is too hot to work then. Around 5 p.m. we return into the greenhouse and pick tomatoes and peppers until after sunset.” He says the hard work earns him about thirty euros a day.

The young man puffs, grabs a bottle of water from a decayed refrigerator and falls down in a dusty seat in the scorching sun. His clothes and worn-out shoes are covered in dust. “I have lived here for two years now,” he says in between large gulps of water. Via Morocco, he crossed the Mediterranean Sea by boat. “It was dangerous, I can’t swim and was afraid of falling overboard.” Through a shadowy network of human smugglers, Richard ended up here in Andalusia, undocumented. 

Traces of destruction

We move further into the village, accompanied by Richard, when several residents gather around us. They point to a large pile of sand, one meter high, that has been raised like a wall around one part of the camp. Two years ago, a large fire broke out there, killing one person. “We were able to stop the fire by digging a large moat, preventing it from spreading throughout the camp,” they say. Traces of the fire are still clearly visible; blackened shoes and charred clothes are still scattered throughout the moat.

Fire is the greatest danger for many residents. Unionist José Garcia confirms this. The various homes in the slum have grown intertwined. They are made of wood and recycled plastic from the greenhouses. Combined with the hot weather and dryness of the desert, those neighborhoods form a dangerous cocktail of easily flammable fuels.  

Homemade gym

Still, the residents of the camp try to make the best of it. They take us to a small hut where they stare furiously at an English Premier League football match. Further down the camp, a man is doing his dishes. They illegally tap running water – and electricity – from the regular grid. The atmosphere is good. Boubacar, 24, from Senegal, proudly shows us the gym he was able to cobble together with his own hands using some materials lying around: empty cans filled with concrete have been transformed into homemade dumbbells and a large bag of sand serves as a weight to train his back.

Next to the gym is a vegetable garden where traditional African crops grow. The peace is disturbed when a Spaniard arrives in a red van. Half a dozen men rush up to it and begin negotiating vigorously with the man. It turns out he is selling fish. “Straight from the sea,” he proudly proclaims. The boys don’t care what kind of fish they buy. “We have no choice. Because of our limited budget, we can’t really afford to be picky.”

Many residents of the camps are eager to get out of the area. “Once we have worked for five years, we will become a long-term resident of the European Union, so we can travel freely around Europe,” says Boubacar. How exactly that works out, he does not know. “It depends on my boss and how well I do my job. I hope to live in France or even the Netherlands and build a life there with my family, away from Spain. There is no future here.”

© Inter Press Service (2023) — All Rights ReservedOriginal source: Inter Press Service

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Fear of Population Ageing — Global Issues

The ageing of populations poses mounting challenges for governments that will require changes in national policy priorities, country institutions and social arrangements. Credit: Maricel Sequeira/IPS
  • Opinion by Joseph Chamie (portland, usa)
  • Inter Press Service

PORTLAND, USA, Feb 21 (IPS) – Fear of population ageing is all over the news media and in government offices of country capitals worldwide. Planet Earth is becoming “planet ageing”.

Population ageing is being described as a demographic time bomb, a humanitarian crisis, a growing burden, a national security threat, ticking towards disaster, a significant risk to global prosperity, a silver tsunami, an unprecedented set of challenges, a problem for young and old.

Government officials, business leaders, economists, healthcare providers, social organizations, political commentators and others are increasingly ringing alarm bells over the menacing demographic ageing of populations.

Adding to those alarm bells is the 2022 Japanese film, Plan 75, presented in May at the annual Cannes Film Festival. That dystopian film describes a government program that encourages senior citizens to be euthanized to remedy the burdens of an aged Japanese society.

More recently, a Yale University assistant professor of economics reportedly suggested that to address Japan’s demographic ageing, elderly Japanese people should commit “mass suicide”. After raising objections in Japan and elsewhere, he subsequently explained that his suggestion was taken out of context. He explained that his remark was intended to address a growing effort to revamp Japan’s age-based hierarchies and make room for younger generations in leadership positions in business and politics.

Mainstream media regularly reports that government expenditures on retirement and healthcare benefits for the elderly are outpacing tax revenues. Also, many governments are reportedly struggling to find the money to support retirees. Furthermore, current trends, unless they are reversed, indicate that the growing numbers of elderly people on the planet pose a challenge for governments to provide the needed care for them.

People have taken to the streets to protest government proposals to address population ageing by making changes to benefits and official retirement ages. In France people have taken to the streets to protest the government’s intention to raise the current age of 62 years to receive government benefits.

Similarly in China, retirees and their supporters are protesting government proposed cuts in benefits for the elderly. And fearing public backlash at the voting booth, elected government officials in the United States are bending over backwards in their assurances, retreating from possible program cuts, and promising that they “won’t touch” Social Security or Medicare.

The ageing of populations should not really come as a surprise to government officials and their many economic and political advisors and aides.

For decades demographers and many others have been writing articles, publishing books, giving presentations, and advising government officials and others about the demographic ageing of populations resulting from the continued decline in fertility rates and increased life expectancy.

Nevertheless, despite those considerable efforts and clear communication about population ageing, governments have not been paying enough attention.

Apparently, governments mistakenly came to believe that the demographic realities of population ageing could simply be ignored because those realities were largely academic matters as well as concerns for the distant future. In fact, however, those realities were neither largely academic nor concerns for the distant future.

Over the past half century, the median age of the world’s population has increased to 30 years in 2020 from 20 years in 1970, an increase of 10 years. Many countries have attained median ages in 2020 well above 35 years, such as France at 41 years, South Korea at 43 years, Italy at 46 years and Japan at 48 year.

In addition, many countries have seen their elderly population reach unprecedented levels. In the United States, for example, more than 1 in 6, or 17 percent, were 65 or older in 2020. That percentage is relatively low in comparison to many other developed countries. In Italy and Japan, the proportion 65 years and older is 24 and 29 percent, respectively (Figure 1).

Source: United Nations.

The ageing of populations certainly poses mounting challenges for governments as well for the elderly that will require changes in national policy priorities, country institutions and social arrangements.

Among those challenges are needs for financial aid, caregiving and assistance, medical treatment, healthcare and drugs. Such needs are not only increasingly overwhelming many households, but they are also straining government resources and the capacities of institutions to provide care for the elderly.

In addition to the financial costs, governments are wrestling with major policy issues. Population ageing is competing with national priorities that require financial resources, including defense, economy, employment, education, health care, environment and climate.

Population ageing is also raising vexing questions about the proper role of government and the responsibilities of individuals for their personal wellbeing in old age. Those questions continue to roil government legislatures and heighten concerns about retirement and old age healthcare among their citizens.

Much of the public believes that the government should be primarily responsible to cover the financial costs and provide the needed care and support to the elderly, as has generally been the case over the past decades in many countries.

Others, however, contend that it is not the role of the government to be primarily responsible to provide care and support to the elderly. They argue that the elderly themselves and their families should be primarily responsible for covering the costs and providing the needed care, support and assistance for older persons.

The fear of population ageing is further complicated by population decline. Over the coming years, many countries across the globe are facing declines in the size of their populations due to below replacement fertility rates (Figure 2).

Source: United Nations.

Demographic ageing coupled with population decline and increased human longevity are forcing governments to address mounting financial issues, especially retirement and healthcare benefits. Many government programs for old age benefits are facing insolvency in the near future.

Possible options to address those financial issues include reducing retirement benefits, limiting eligibility, raising the retirement age and increasing taxes. As would be expected, reducing benefits, limiting eligibility and raising retirement ages are unpopular among most of the public. While many are in favor of increased taxes to fund retirement pensions and healthcare for the elderly, businesses and investors are generally opposed to raising taxes.

The consequences of the demographic realities of population ageing are largely unavoidable and need to be addressed. Governments may continue choosing to avoid addressing those consequences. Perhaps they are hoping that if the demographic realities are ignored, they somehow will magically disappear.

Governments need to stop ringing the alarm bells about population ageing. Instead, they need to adapt to the demographic realities of population ageing. In particular, governments need to address the weighty consequences of population ageing by making the admittedly difficult but necessary policy and program decisions regarding official retirement age, pensions benefits, assistance, and healthcare.

Joseph Chamie is a consulting demographer, a former director of the United Nations Population Division and author of numerous publications on population issues, including his recent book, “Population Levels, Trends, and Differentials”.

© Inter Press Service (2023) — All Rights ReservedOriginal source: Inter Press Service

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It’s Time to Move Away from Public-Private Partnerships & Build a Future That is Public — Global Issues

Protesters in Mulhouse, France warn of the dangers of privatisation. The sign reads ‘when everything is privatised, we will be deprived of everything. Credit: NeydtStock / Shutterstock.com
  • Opinion by Oceane Blavot – Rodolfo Bejarano – Mae Buenaventura (brussels / lima / manila)
  • Inter Press Service

BRUSSELS / LIMA / MANILA, Feb 02 (IPS) – Last month, we joined more than 1000 representatives from all sectors of civil society who came together in Santiago de Chile to debate the future of – and threats to – public services the world over.

Participants discussed the chronic underfunding which continues to drive economic inequality, injustice and austerity, and the neocolonial policies that maintain the status quo.

Today those debates have resulted in the launch of “Our Future is Public: The Santiago Declaration for Public Services” – a momentous agreement signed by more than 200 organisations vowing to work to “transform our systems, valuing human rights and ecological sustainability over GDP growth and narrowly defined economic gains.”

One of the most damaging initiatives that has deeply affected the delivery of public services and infrastructure projects on all continents is the rise of public-private partnerships, or PPPs.

They have long been promoted by institutions such as the World Bank as a silver bullet to close the so-called gap to finance investments in services and infrastructure. The premise is that the private sector can deliver these services more efficiently and to a higher standard than the public sector, despite extensive evidence to the contrary.

We lay the pitfalls of PPPs bare in our new report History RePPPeated II: Why public-private partnerships are not the solution – the second in a series of investigations documenting the impacts of PPPs across Africa, Asia, Latin America and Europe.

Launched at the Santiago conference with some of the partners responsible for investigating and authoring the case studies, the report not only highlights negative impacts of PPPs, but sets out recommendations for how to better finance infrastructure and public services in the face of false solutions that have been proposed given the context of the current polycrisis.

These narratives wholly reflect red flags that are raised in the Santiago Declaration.

Through these investigations, we discovered failures on multiple levels in PPPs covering infrastructure such as roads and water supplies, as well as vital public services like healthcare and education.

From escalating costs for the stretched public sector to environmental and social impacts, we found time and again that communities had been ignored, displaced, and had their basic rights violated by thoughtless projects designed and implemented in the pursuit of profit.

A prime example is that of the the Melamchi Water Supply Project (MWSP) in Nepal. First announced nearly a quarter of a century ago, the project’s aim was to deliver clean, reliable and affordable water to 1.5 million people in Kathmandu.

And yet, 24 years later, residents are still waiting, while communities at the Melamchi water source are facing scarcity of water and eroded livelihoods. Instead of safe, clean drinking water – an internationally recognised human right – they have witnessed an extraordinary revolving door of private companies and institutional funders, including the World Bank, who have each failed to deliver.

To add to the MWSP’s colossal failure, 80 hectares of farmland have been lost to the project, a heavy blow to local residents, and up to 80 households have been forcibly displaced due to construction.

Who owns and controls our resources and public services became even more vitally important with the outbreak of the Covid pandemic in March 2020. Market-based models cannot be relied upon to deliver on human rights or the fight against inequalities as they are accountable only to their shareholders and not to their users.

This resulting focus on profit is overwhelmingly apparent in our case study from Liberia. Here, US firm Bridge International Academies (now NewGlobe) ‘abandoned’ its students and teachers during the height of the Covid-19 pandemic, shutting down schools and cutting teachers’ salaries by 80-90 per cent, despite being paid by the government.

And yet, in 2021 the Liberian government indefinitely extended the project, effectively subsidising a US for-profit firm at a cost that is at least double government spending on public schools.

In Peru, the Expressway Yellow Line has emerged as one of the most controversial projects ever carried out. This toll road was supposed to ease congestion issues in the capital city Lima, but instead toll rates have been unreasonably increased on at least eight occasions.

This generated almost $23 million for the private company involved and transpired with the complicity of public officials. Meanwhile, the Peruvian state suffered economic damages of US$1.2 million due to under the table negotiations between public officials and the private company, which led to the incorrect implementation and improper modifications of the contract years after it was initially signed.

Today, questions regarding the project and conflicts surrounding its implementation remain, while Lima residents’ expectations of quality road infrastructure to improve living conditions for those who have been most affected, continue to go unmet.

The human cost of the PPP projects showcased by History RePPPeated II is self-evident, but they are far from the exception. Rather they serve to illustrate common failures with the PPP model that risk compromising fundamental human rights and that undermine the fight against climate change and inequalities.

Their continuing promotion is one of the many reasons why we support the Santiago Declaration. Together with all its signatories, we will strengthen resistance to PPPs with their focus on private-led interests and promote public-public or public-common partnerships for a future that is public.

Océane Blavot is Senior Campaign and Outreach Coordinator, Development Finance, European Network on Debt and Development; Rodolfo Bejarano is Economist and Analyst – New Financial Architecture, Latin American Network for Economic and Social Justice; Mae Buenaventura is Debt Justice Programme, Team Manager, Asian People’s Movement on Debt and Development

The Santiago Declaration on Public Services, is a global manifesto signed by more than 300 organisations from around the world, and which was launched at the end of last week. The Declaration signals the start of an international movement to move away from the privatisation of public services and towards a future that is publicly funded and controlled. It is also the outcome of a 4-day conference during which several CSOs from around the world launched a report containing a series of investigations highlighting the failures of the PPP model in projects around the world, titled History RePPPeated II.

This OpEd is authored by three of the report’s authors.

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US Policies Slowing World Economy — Global Issues

  • Opinion by Jomo Kwame Sundaram (kuala lumpur, malaysia)
  • Inter Press Service

KUALA LUMPUR, Malaysia, Feb 02 (IPS) – Few policymakers ever claim credit for causing stagnation and recessions. Yet, they do so all the time, justifying their actions by some supposedly higher purpose.

Now, that higher purpose is checking inflation as if it is the worst option for people today. Many supposed economists make up tall tales that inflation causes economic contraction which ordinary mortals do not know or understand.

Jomo Kwame SundaramInflating inflation’s significance
Since early 2022, like many others in the world, Americans have been preoccupied with inflation. But official US data show inflation has been slowing since mid-2022.

Recent trends since mid-2022 are clear. Inflation is no longer accelerating, but slowing. And for most economists, only accelerating inflation gives cause for concern.

Annualized inflation since has only been slightly above the official, but nonetheless arbitrary 2% inflation target of most Western central banks.

At its peak, the brief inflationary surge, in the second quarter of last year, undoubtedly reached the “highest (price) levels since the early 1980s” because of the way it is measured.

After decades of ‘financialization’, the public and politicians unwittingly support moneyed interests who want to minimize inflation to make the most of their financial assets.

War and price
Russia’s aggression against Ukraine began last February, with retaliatory sanctions following suit. Both have disrupted supplies, especially of fuel and food. The inflation spike in the four months after the Russian invasion was mainly due to ‘supply shocks’.

Price increases were triggered by the war and retaliatory sanctions, especially for fuel, food and fertilizer. Although no longer accelerating, prices remain higher than a year before.

To be sure, price pressures had been building up with other supply disruptions. Also, demand has been changing with the new Cold War against China, the Covid-19 pandemic and ‘recovery’, and credit tightening in the last year.

There is little evidence of any more major accelerating factors. There is no ‘wage-price spiral’ as prices have recently been rising more than wages despite government efforts ensuring full employment since the 2008 global financial crisis.

Despite difficulties due to inflation, tens of millions of Americans are better off than before, e.g., with the ten million jobs created in the last two years. Under Biden, wages for poorly paid workers have risen faster than consumer prices.

Higher borrowing costs have also weakened the lot of working people everywhere. Such adverse consequences would be much less likely if the public better understood recent price increases, available policy options and their consequences.

With the notable exception of the Bank of Japan, most other major central banks have been playing ‘catch-up’ with the US Federal Reserve interest rate hikes. To be sure, inflation has already been falling for many reasons, largely unrelated to them.

Making stagnation
But higher borrowing costs have reduced spending, for both consumption and investment. This has hastened economic slowdown worldwide following more than a decade of largely lackluster growth since the 2008 global financial crisis.

Ill-advised earlier policies now limit what governments can do in response. With the Fed sharply raising interest rates over the last year, developing country central banks have been trying, typically in vain, to stem capital outflows to the US and other ‘safe havens’ raising interest rates.

Having opened their capital accounts following foreign advice, developing country central banks always offer higher raise interest rates, hoping more capital will flow in rather than out.

Interestingly, conservative US economists Milton Friedman and Ben Bernanke have shown the Fed has worsened past US downturns by raising interest rates, instead of supporting enterprises in their time of need.

Four decades ago, increased servicing costs triggered government debt crises in Latin America and Africa, condemning them to ‘lost decades’. Policy conditions were then imposed by the International Monetary Fund and World Bank for access to emergency loans.

Globalization double-edged
Economic globalization policies at the turn of the century are being significantly reversed, with devastating consequences for developing countries after they opened their economies to foreign trade and investment.

Encouraging foreign portfolio investment has increasingly been at the expense of ‘greenfield’ foreign direct investment enhancing new economic capacities and capabilities.

The new Cold War has arguably involved more economic weapons, e.g., sanctions, than the earlier one. Trump’s and Japanese ‘reshoring’ and ‘friend-shoring’ discriminate among investors, remaking ‘value’ or ‘supply chains’.

Arguably, establishing the World Trade Organization in 1995 was the high water mark for multilateral trade liberalization, setting a ‘one size fits all’ approach for all, regardless of means. More recently, Biden has continued Trump’s reversal of earlier trade liberalization, even at the regional level.

1995 also saw strengthening intellectual property rights internationally, limiting technology transfers and progress. Recent ‘trade conflicts’ increasingly involve access to high technology, e.g., in the case of Huawei, TSMC and Samsung.

With declining direct tax rates almost worldwide, governments face more budget constraints. The last year has seen these diminished fiscal means massively diverted for military spending and strategic ends, cutting resources for development, sustainability, equity and humanitarian ends.

In this context, the new international antagonisms conspire to make this a ‘perfect storm’ of economic stagnation and regression. Hence, those striving for international peace and cooperation may well be our best hope against the ‘new barbarism’.

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We Want to Be Legal; We’re Not ‘Zama Zama’ Criminals Say South African Artisanal Miners — Global Issues

Artisanal miners at work. Credit: Supplied
  • by Fawzia Moodley (johannesburg)
  • Inter Press Service

JOHANNESBURG, Jan 23 (IPS) – Mining towns across South Africa have become hostage to a booming but bloody illegal mining economy.

Wealthy kingpins, mainly from neighbouring Lesotho, run criminal syndicates and recruit poverty-stricken workers to go into disused underground shafts to dig for the country’s mineral wealth. Dubbed ‘Zama Zama’, many of them are former mine workers retrenched by the big legal mines and who know the ins and outs of the dangerous but lucrative mining operations.

Paps Lethoko, the chairperson of the National Association of Artisanal Miners (NAAM), says these the Zama Zama spend months in the underground shafts. Their criminal bosses run tuck shops in the dark belly of the earth.

“The tuck shops sell bread for R200 (normal price around R20), tinned fish for R300 (normally about R25). After months of living in the claustrophobic catacombs under hazardous conditions, the miners end up with about R30,000 (about 1800 USD) and paying more than double the normal amount for food and other necessities to the very bosses who employ them,” he told IPS.

Zama Zama miners are seen in an informal settlement in Johannesburg, South Africa. Credit: Fawzia Moodley/IPS

Lethoko says most disused underground shafts in Klerksdorp, a mining town in the North West province, are run by a wealthy politician from Lesotho.

“The Basotho miners are forced to pay the security guards up to R20,000 (about 1700 USD) to enter the mines they are employed at. They are treated worse than slaves, just as they were by mining companies under apartheid.”

Violence is inevitable. Local communities and artisanal miners, who until recently could not become legal, often get caught in the crossfire of territorial battles between rival Zama Zama gangs.

In July 2022, all hell broke loose after the horrific gang rape of film crew members at a mine dump close to West Village in Krugersdorp on the West Rand. Police arrested 80 Zama Zama, 14 of whom were directly linked to the rape incident but were later acquitted.

Artisanal miners, who are already struggling with bureaucracy and lack of a proper legal regime to get licenses to operate legally, say the rape incident has damaged their cause even further.

Lethoko says: “We have been trying to form cooperatives and get permits to operate legally, but the mining companies, the media, and even the police lump us with the criminal Zama Zama.”

An advocate who was assisting them at the Legal Resources Centre (LRC) agrees: “People and even the police don’t understand that the artisanal miners, essentially local people who have for centuries been mining in survival mode, want to be law-abiding citizens but are hampered by a broken system every step of the way.”

The LRC published a report in 2016 on the conditions under which artisanal miners operate, and little has changed since then.

In the North West province, NAAM tried negotiating with mining giant Harmony Gold to allow artisanal miners to continue mining on the perimeters of the mine. “The local people know where to find the gold in the abandoned mine dumps. This is indigenous knowledge because they have been doing it for a long time, but we want to be legal, so we formed a cooperative and had a meeting with the company.

“The next thing, Harmony’s security prevented them from mining on the land even though it had long been abandoned, and the company applied for an interdict against me and the miners for trespassing,” says Lethoko.

Worse still, a gold rush followed as news of the abundance of gold in the area spread.

“The Basotho Zama Zama arrived en masse; they have a lot of money, so they bribed the mine security and took over the area from where local artisanal miners had been barred by the mine.”

The Department of Mineral Resources and Energy (DMRE) now recognises artisanal mining but getting permits is expensive and onerous.

“Artisanal miners live a hand-to-mouth existence; most of us don’t have data or even money for permits, and DMRE officers at the local level don’t seem to know that artisanal mining cooperatives can now be legally recognised.”

Lethoko says the other problem is a lack of a regulatory framework. “The regional DMRE and most local government officials are unaware that we have the right to be recognised, so they and the police continue to treat us as criminals instead of assisting us to obtain permits.”

Getting permits is literally a “minefield”. So far, only one co-op in Kimberley in the Northern Cape Province has received legal recognition since the law changed in 2017.

Toto Nzamo, a member of the Tujaliano Community Organisation, says xenophobic tension erupts regularly as Zama Zama violence spills into local communities.

It doesn’t help that the Artisanal and Small Scale Mining Policy which recognises the potential of artisanal mining as a livelihood strategy, reserve the permit system for South Africans.

Nzamo works with artisanal miners and Zama Zama in the Makause informal settlement in Germiston near Johannesburg, who are involved in surface gold mining at a disused mine and are struggling to get licenses.

“They have to form co-ops, identify the land they wish to mine on, and have environmental assessments done. These people have neither the skills nor the access to the kind of money required. A geologist’s report costs at least R82000; where are these poor people supposed to get that kind of money?” asks Nzamo.

He says the only way to end the Zama Zama violence and criminality is for the Department of Home Affairs and the DMRE to work together to ensure that foreign nationals who qualify get their papers quickly.

“The tragedy is that between the criminal syndicates, the big mining houses that are returning to mines they once abandoned because now there is technology available to mine profitably again, and the inept DMRE, decent law-abiding people are being prevented from earning a living lawfully,” the advocate said.

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The Year of Inflation Exposes Dogma and Class Bias — Global Issues

  • Opinion by Anis Chowdhury (sydney)
  • Inter Press Service

SYDNEY, Jan 17 (IPS) – Inflation worries topped Ipsos’s What Worries the World survey in 2022 overtaking COVID concerns. The return of inflation caught major central banks, e.g., the US Federal Reserve (Fed), Bank of England, European Central Bank “off guard”. The persistence of inflation also surprised the International Monetary Fund (IMF). The return of inflation and its persistence exposed the poverty of the economics profession, unable to agree on its causes and required policy responses. It also exposed the profession’s anti-working class biases.

Anis Chowdhury

Inflation goof

Almost all major central banks as well as the IMF dismally failed to see the coming of inflation. In December 2020, the US Fed forecast that prices would rise by less than 2% in 2021 and 2022. It failed spectacularly when in December 2021, it estimated that inflation in 2022 would be just 2.6% even though prices were already rising by more than 5% a year.

The US Fed was not alone in failing to see inflation coming. The Governor of Australia’s central bank – the Reserve Bank of Australia (RBA) – was so confident of low inflation that he declared in March 2021 that the interest rate would remain at a historic low until at least 2024. Inflation in advanced economies during 2021 exceeded the average of forecasters’ expectations by around 5–8 percentage points. The IMF’s forecasts have badly and repeatedly undershot inflation.

There was a widespread view among most central bankers and leading economists that the price increases (or inflation) that began in mid-2021 were temporary, and price increases would slow or inflation would drift downwards in 2022. Some, of course, insisted otherwise, and wanted immediate anti-inflationary measures. Thus, policy confusion ruled.

Inflation phobia and dogma

Soon inflation phobia overtook and central banks were advised to act decisively with interest rate hikes even if it meant slowing the economy or a rise in unemployment. Exaggerated claims were made without evidence that not acting now would be more costly later.

References to rare episodes of hyperinflation were made to justify tough policy stances.

The dogmatic inflation hawks ignored the fact that, in most cases, inflation does not accelerate to become harmful hyperinflation, but remains moderate. They also ignored their own neo-classical macroeconomic model, which suggests small welfare loss from moderate inflation.

Notwithstanding the IMF’s Article IV preamble which provides that economic policies should aim to foster “orderly economic growth with reasonable price stability, with due regard to circumstances”, a one-size-fits-all policy of steep interest rate hikes became the only medicine to be applied to achieve a universal inflation target of 2%, a figure plucked from thin air. Yet, central bankers and mainstream economists boast their credibility!

Inflation excuse for class war

Inflation is primarily an expression and outcome of conflicting claims over the distribution of national output and income, e.g., firms’ profit mark-ups vis-à-vis workers’ wages. Thus, no sooner inflation spiked early in the year due to slow adjustment of COVID-induced supply shortages to pent-up demand, exacerbated by war and sanctions, leading central bankers and mainstream economists found an excuse to weaponise economic policies against the working class.

Stoking the fear of wage-price spirals, they advocate the use of an interest rate sledgehammer to create unemployment and, in turn, discipline labour. This is despite research within the IMF and the Reserve Bank of Australia which found no evidence of wage-price spirals since the 1980s due to declines in labour’s bargaining power. Thus, Bloomberg headlined, “Fattest Profits Since 1950 Debunk Wage-Inflation Story of CEOs”.

Research conducted by the IMF also found increases in firms’ or corporations’ market power, resulting in higher prices and profit margins. Yet, the IMF does not think such factors “are contributing in any sizeable way to the current inflationary environment”. Instead, it justifies such fattening of profits on the ground that “they provide flexible buffers between general wage and general price increases” and that it is only a catching-up “after taking a hit in 2020”!

But no such compassion is extended to the working people who have lost their lives and livelihoods. The calls for “front-loaded interest rate hikes simply got louder. The Bank for International Settlements (BIS) warned, “With the prospect of higher wages as workers look to make up for the purchasing power they lost, inflation could be high for long”.

Labour a clear loser

Labour is a clear loser. Labour’s income share in the GDP has been in decline since the early 1970s. Casualisation, off-shoring, anti-union legislation and technological progress have greatly reduced labour’s bargaining power, while privatisation and dilution of anti-monopoly legislation hugely strengthened corporate power and their collusive anti-competitive behaviour. Meanwhile, CEO compensation packages swelled to obnoxious levels, rising 940% since 1978 in the US as opposed to a 12% rise for workers during that period. Profiting from the pandemic, CEO pay increased by 16% in 2020 when workers suffered, and to a record level in 2021.

Leading central bankers and mainstream economists conveniently created a dogma around a 2% inflation target to justify their anti-labour stance. The 2% inflation target has become a global norm akin to the law of gravity, even though it has no theoretical or empirical basis. The law of gravity differs depending on altitude, but the 2% target is said to be universal regardless of circumstances!

Collateral damage

Meanwhile, the advanced countries’ inflation fight is causing adverse spillover into developing countries. Higher interest rates have slowed the world economy, and triggered capital outflows from developing countries, thereby depreciating their currencies and lowering their export earnings.

Together, these are causing devastating debt crises in many developing countries, similar to what happened in the 1980s. The rating agency S&P estimates that central bank rate rises could land global borrowers with US$8.6t in extra debt servicing costs in the coming years.

Instead of providing genuine debt-relief, the G20 kicked the can down the road. As wealthy nations failed the poor countries during the pandemic, the IMF is moving to debt-distressed countries with conditionality-laden one-size-fits-all austerity packages. Thus, a Foreign Policy op-ed asked, “The International Monetary Fund: Holy Grail or Poisoned Chalice?”

Meanwhile, the chiefs of the World Bank and the BIS urged “supply-side” policies professed to increase labour force participation and investment. These are code words for further labour market deregulation, privatisation and liberalisation.

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Demography Doesn’t Care — Global Issues

The median ages of populations are expected to continue rising over the coming decades. East Nanjing Road, Shanghai, China. Credit: Shutterstock.
  • Opinion by Joseph Chamie (portland, usa)
  • Inter Press Service

PORTLAND, USA, Jan 16 (IPS) – Demography doesn’t care about such things as national strikes over pension retirement ages, public protests about contraception and abortion rights, sexual orientation, habits and preferences, political ideology and party affiliation, dress codes and head coverings, and religious identity, beliefs and practices.

Demography is basically about the mathematics of human populations, i.e., births, deaths, migrations, ageing, morbidity, sex ratios, mobility, size, change, growth, distribution, density, structure, composition, life expectancies, biological, social and economic characteristics, etc.

Demography is relatively straightforward, visible and equitable. For example, in every human population a person is born an infant at age zero, ages one year every twelve months, and eventually over time faces death, too often earlier rather than later unfortunately.

Between birth and death, a wide variety of demographic phenomena or transitions typically occur in human populations. Among them are surviving infancy and childhood, passing through puberty, finding a mate, having offspring, migrating to another place, falling ill or becoming disabled, and experiencing ageing.

Over the many centuries of human history, the interactions of those various demographic phenomena and transitions have resulted in today’s world population of 8,000,000,000. That extraordinary number of human beings now inhabiting planet Earth is due in large part to the record-breaking rapid growth of world population during the 20th century.

World population reached the one billion milestone at the start of the 19th century in 1804. The 20th century then ushered in what turned out to be the century of rapid demographic growth. World population nearly quadrupled from 1.6 billion at the start of the 20th century to 6.1 billion by the century’s close (Figure 1).

Source: United Nations.

In addition to that unprecedented rapid demographic growth, the world’s annual rate of population growth peaked at 2.3 percent in 1963. Also, by 1990 the world’s annual population increase reached a record high of 93 million.

The unprecedented growth of world population that took place during the 20th century was simply the result of births greatly outnumbering deaths with mortality rates dropping rapidly, especially during the second half of the past century.

The world’s fertility rate in the 1960s, for example, was about five births per woman and births outnumbered deaths by nearly three to one in the 1980s. Life expectancy at birth increased dramatically, increasing from about 45 years in the middle of the 20th century to about 65 years by the end of the century.

The current demographic situation for the world is different from the exceptional rates, levels and changes of the past century. For example, the growth rate of world population in 2021 was about 0.8 percent, or nearly one-third the peak level in 1963.

In addition, the annual increase of world population in 2021 was about 68 million, or about three-fourths the level in 1990. Also, the median age of the world’s population, which was about 20 years in 1970, has increased by 50 percent, reaching 30 years in 2022.

The world’s fertility rate is now about 2.3 births per woman, or about half the level 60 years ago. In addition, approximately 100 countries have a total fertility rate below the replacement level of 2.1 births per woman.

Furthermore, the fertility rates of some thirty countries in 2021 were less than 1.5 births per woman. Several of those countries had fertility rates that were approximately half or less than the replacement level, including China at 1.16, Singapore at 1.12 and South Korea at 0.81 (Chart 1).

Source: United Nations.

As a result of below replacement fertility rates, the current populations of some 60 countries are expected to be smaller by 2070. The total population decline of those countries over the next 50 years is projected to be more than a half a billion. Among the countries with the largest declines in their populations are China (-340 million), Japan (-35 million), Russia (-22 million), South Korea (-16 million) and Italy (-15 million).

In addition, many countries are expected to experience substantial declines in the relative size of their populations. Many of those countries are projected to have population declines of 10 percent or more over the coming four decades. For example, the relative decline in population size is expected to be 22 percent for Japan, 21 percent for South Korea and 18 percent for Italy (Figure 2).

Source: United Nations.

At the other extreme, the populations of two dozen countries, accounting for nearly 10 percent of the world’s population, are expected to more than double by 2060. Those projected population increases by 2060 include 106 percent in Afghanistan, 109 percent in Sudan, 113 percent in Uganda, 136 percent in Tanzania, 142 percent in Angola, 147 percent in Somalia, 167 percent in the Democratic Republic of the Congo, and 227 percent in Niger (Figure 3).

Source: United Nations.

In addition to the projected decline and growth of national populations, the age structures of countries worldwide are expected to become substantially older. Many countries have attained median ages in 2020 above 40 years, such as France at 41 years, South Korea at 43 years, Italy at 46 years and Japan at 48 years.

The median ages of populations are expected to continue rising over the coming decades. The median age for the world, for example, is expected to increase from 30 years today to close to 40 years by 2070. In some countries, including China, Italy, Japan and South Korea, the median ages of their populations by 2070 are projected to be 55 years or older.

Demographic ageing in the 21st century constitutes a major challenge for societies and economies. The consequences of the demographic realities of older population age structures and increasing human longevity are likely unavoidable.

In particular, the ageing of populations is contributing to strains on fiscal revenues and spending on pensions and healthcare for the elderly. Despite the ageing of populations and increases in human longevity, official retirement ages for government pension benefits have remained largely unchanged at comparatively low ages.

In France, for example, the official pension retirement age is 62 years, which is well below the retirement ages of many other developed countries. Despite criticisms, protests and a scheduled national strike from worker unions and leftist opponents, the French government has unveiled a pension overhaul that proposes gradually raise the retirement age to 64 years by 2030.

Also, a mounting crisis for a growing number of countries worldwide is illegal immigration. Neither governments nor international agencies have been able to come up with sensible policies and effective programs to address the mounting illegal immigration crisis.

A major factor behind the rise of illegal immigration is the large and growing supply of men, women and children in sending countries who want to migrate to another country and by any means possible, including illegal immigration. The number of people in the world wanting to migrate to another country is estimated at nearly 1.2 billion.

In conclusion, too often many choose to ignore, deny or dismiss today’s demographic realities, such as population growth and decline, demographic aging, declining fertility, rising life expectancy and increasing illegal immigration.

Rather than acknowledging, addressing and adjusting to the challenging consequences of the demographic realities of the 21st century, many are turning to protests, strikes, demonstrations, and balderdash. Demography, however, simply doesn’t care about such things.

Joseph Chamie is a consulting demographer, a former director of the United Nations Population Division and author of numerous publications on population issues, including his recent book, “Births, Deaths, Migrations and Other Important Population Matters.”

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More Austerity in 2023 Will Fuel Protests — Global Issues

Anti-Austerity protests in 2006-2020. Credit: World Protests Platform
  • Opinion by Isabel Ortiz, Sara Burke (new york)
  • Inter Press Service

NEW YORK, Jan 13 (IPS) – This week world leaders meet in Davos to discuss cooperation to address multiple crises, from COVID-19 and escalating inflation to slowing economic growth, debt distress and climate shocks.

Only three months earlier, finance ministers had gathered in Washington DC for the same reason. The mood was grim. The need for ambitious actions could not be greater; however, there were no agreements, evidencing the fragility of multilateralism and international cooperation.

Isabel Ortiz

Worse, policy makers -advised by the International Monetary Fund- are resorting to old, failed and regressive policies, such as austerity (now called “fiscal restraint” or “fiscal consolidation”), instead of much needed corporate/wealth taxation and debt reduction initiatives, to ensure an equitable recovery for all.

A recent global report alerts of the dangers of a post-pandemic wave of austerity, far more premature and severe than the one that followed the global financial crisis a decade ago. While governments started cutting public expenditures in 2021, a tsunami of budget cuts is expected in 143 countries in 2023, which will impact more than 6.7 billion people or 85% of the world population.

Analysis of the austerity measures considered or already implemented by governments worldwide shows their significant negative impacts on people, harming women in particular. These austerity policies are:

  • targeting social protection, excluding vulnerable populations in need of support by cutting programs for families, the elderly and persons with disabilities (in 120 countries);
  • cutting or capping the public sector wage bill, this is, reducing the number and salaries of civil servants, including frontline workers like teachers and health workers (in 91 countries);
  • eliminating subsidies (in 80 countries);
  • privatizing public services or reforming state-owned enterprises (SOEs) in areas such as public transport, energy, water;
  • reforming hard-earned pensions by adjusting benefits and parameters, resulting in lower incomes for retirees (in 74 countries);
  • (6) labor flexibilization reforms (in 60 countries);
  • reducing employers’ social security contributions, making social security unsustainable (in 47 countries);
  • and even cutting health expenditures despite COVID-19 is not over.
Sara Burke

Austerity and all the human suffering it causes is evitable, there are alternatives. There are at least nine financing options, available even in the poorest countries, fully endorsed by the UN and international financial institutions, from increasing progressive taxation to reducing debt. Policymakers must urgently look into these. Many countries have already implemented them.

In recent years, citizens have protested austerity all around the world. A recent study on world protests shows that nearly 1,500 protests in the period 2006-2020 were against austerity. Citizens demand better public services, social protection, jobs with decent wages, tax and fiscal justice, equitable land distribution, and better living standards, among others. Protests against pension reforms, and high food and energy prices have also been very prevalent. Recently, the jobs and cost-of-living crises have been accentuated by the COVID-19 pandemic, resulting in more protests despite lockdowns.

The majority of global protests against austerity and for economic justice have manifested people’s indignation at gross inequalities. The idea of the “1% versus the 99%,” that emerged a decade ago during protests over the 2008 financial crisis, has spread around the world, feeding grievances against elites and corporations manipulating public policies in their favor, while the majority of citizens continue to endure low living standards, aggravated by austerity cuts.

Let’s remember that trillions of dollars have been used to support corporations during the pandemic and to support military spending. Now people are being asked to endure austerity cuts, at a time when they are suffering a cost-of-living crisis. The 2023 meetings in Davos are being faced with new protests and demands to tax the rich.

Unless policymakers change course, we shouldn’t be surprised to see increasing waves of protests all over the world. Clashes in the street are likely to intensify if governments continue to fail to respond to people’s demands and persist in implementing harmful austerity policies.

Governments need to listen to the demands of citizens that are legitimately protesting the denial of social, economic and civil rights. From jobs, public services and social security to tax and climate justice, the majority of protesters’ demands are in full accordance with United Nations proposals and the Universal Declaration of Human Rights. Leaders and policymakers will only generate further unrest if they fail to act on these legitimate demands.

Isabel Ortiz is Director of the Global Social Justice Program at Joseph Stiglitz’s Initiative for Policy Dialogue at Columbia University, former Director at the International Labour Organization (ILO) and UNICEF.

Sara Burke is Senior Policy Analyst at Friedrich-Ebert-Stiftung (FES) New York

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Raising Retirement Age Coming Soon — Global Issues

Over the past fifty years the world’s life expectancy at birth increased by 16 years, i.e., from 56 in 1970 to 72 in 2020. Credit: Maricel Sequeira/IPS
  • by Joseph Chamie (portland, usa)
  • Inter Press Service

PORTLAND, USA, Dec 23 (IPS) – Despite the objections, resistance and protests taking place in many countries around the world, raising the official retirement age to receive government provided pension benefits is coming soon.

The primary reason for raising the official retirement age is the rapidly rising costs of national old-age pension programs, which are mainly the result of two powerful global demographic trends: population ageing and increased human longevity.

The age structures of populations worldwide are becoming older than ever before. Over the past half century, for example, the median age of the world’s population has increased by 10 years, i.e., from 20 years in 1970 to 30 years in 2020. Many countries have attained median ages in 2020 well above 35 years, such as France at 41 years, South Korea at 43 years, Italy at 46 years and Japan at 48 years (Figure 1).

Source: United Nations.

Moreover, the median ages of populations are expected to continue rising over the coming decades. The median age for the world, for example, is expected to reach close to 40 years by 2070. Also in some countries, including China, Italy, Japan and South Korea, the median ages of their populations by 2070 are projected to be 55 years or older.

The pace of changes in the population age structures of China and South Korea are particularly noteworthy. In 1970 their populations had a median age of 18 years, i.e., half of their populations were children. By 2070 the median ages of China’s and South Korea’s populations are expected to triple to 55 and 61 years, respectively, with the proportion of children declining to 12 and 10 percent, respectively.

Many countries will see their elderly population increase rapidly, reaching about one-third of their total populations by midcentury. In addition, by 2070 the proportion aged 65 years and older in some countries, such as China, Italy, Japan, South Korea and Spain, are expected to be approximately 40 percent.

In addition to markedly older population age structures, life expectancies have increased significantly during the recent past with both men and women living longer than ever before. For example, over the past fifty years the world’s life expectancy at birth increased by 16 years, i.e., from 56 in 1970 to 72 in 2020.

The gains in life expectancies at birth for some countries were even more impressive, with increases of more than 20 years during the past five decades. Again, the gains in life expectancy achieved by China and South Korea are particularly noteworthy. China’s life expectancy at birth increased by 21 years, i.e., from 57 years in 1970 to 78 years in 2020, and South Korea’s increased by 22 years, i.e., from about 62 years in 1970 to 84 years in 2020.

Moreover, the life expectancies of the elderly have also increased over the recent past. At age 65, for example, the world’s average life expectancy increased by four years, from 13 years in 1970 to 17 years in 2020. And in many developed countries, including Canada, Italy, France, Germany, Italy and Japan, life expectancies at age 65 years have reached 20 years or more (Figure 2).

Source: United Nations.

Some of the largest gains in life expectancies at age 65 years have been in East Asia. For example, gains in China, South Korea and Japan were 7, 8 and 9 years, respectively, resulting in life expectancies at age 65 of 18, 22 and 23 years, respectively. In other words, people in those countries on average can expect to live to ages 83, 87 and 88 years, respectively.

Despite the recent setbacks in life expectancies due to deaths from the COVID-19 pandemic, life expectancies of the elderly are expected to continue rising throughout the remainder of the 21st century. For example, by 2070 the world is projected to have an average life expectancy at age 65 of 21 years. Also, many developed countries by that time are expected to have life expectancies at age 65 of 25 years or more, i.e., people surviving on average to age 90.

Even with the ageing of populations and increases in human longevity, official retirement ages in order to receive government pension benefits have remained largely unchanged at relatively low levels, typically below 65 years. For example, the official retirement age in France and South Korea is 62 years and in Brazil and Russia the retirement age is also 62 for men, 57 years for women (Figure 3).

Source: OECD.

However, some countries are now proposing to raise their retirement ages. China, for example, recognizing its rapidly ageing population, shrinking labor force and its national pension’s expected insolvency by 2035, has said that over the next five years it would gradually delay the legal retirement ages, which have been unchanged for more than 70 years.

Despite public objections in the past, China took an initial step several months ago to raise its current retirement age, which is 60 for men and 55 for white-collar women workers and 50 for blue-collar women workers. In one of its eastern provinces people were permitted to start voluntarily applying for delayed retirement.

Also, the French government, remarking “vivre plus longtemps, travailler plus longtemps”, has proposed that beginning in 2023 the minimum retirement age to receive a full pension be gradually increased from today’s 62 to 65 by 2031. Although previous proposals were shelved due to nationwide strikes, the French government has said that without those proposed changes a decrease in the size of pensions would be needed.

One OECD country, the United States, was among the earliest in legislating an increase in the official retirement age to 67 years to receive full benefits, which is above the current average age for OECD countries. Also, seven OECD countries have introduced linkages between life expectancy and retirement age.

In addition to being unpopular among the general public, raising the official retirement age is an issue that governments are not eager to address. Typically, government officials remain silent on the issue and postpone making decisions regarding projected financial shortfalls in national retirement programs.

In the United States, for example, the Social Security Board of Trustees in its 2022 annual report concluded that if no changes are made, the program will not be able to meet its financial responsibilities by 2035. Although various political statements have been made by government officials, the U.S. Congress has yet to propose the needed legislation to address Social Security’s projected insolvency in a dozen years.

In general, the three major options available to governments to address pension insolvency are: reduce benefits, increase taxes and raise retirement age. Reducing benefits, however, would create financial difficulties for many of the elderly. Increasing taxes is also unlikely to be well received by today’s workers and business communities. Consequently, raising the retirement age may be the least objectionable option to address projected pension insolvencies.

The consequences of the demographic realities of older population age structures and increasing longevity are unavoidable. In particular, those consequences include: decreasing numbers in the labor force per retired person: increasing proportions in old age who are living longer; and rising costs for old age retirement benefits that threaten the solvency of the national programs.

In sum, raising the retirement age addresses many of the consequences of those seismic demographic changes as well as expands the size of the labor force, provides additional years for workers to save for retirement, and deals with the projected insolvencies of government pension programs.

Joseph Chamie is a consulting demographer, a former director of the United Nations Population Division and author of numerous publications on population issues, including his recent book, “Births, Deaths, Migrations and Other Important Population Matters.”

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AGRA Gets Make-Up, Not Make-Over — Global Issues

  • Opinion by Jomo Kwame Sundaram, Timothy A. Wise (boston and kuala lumpur)
  • Inter Press Service

BOSTON and KUALA LUMPUR, Nov 29 (IPS) – Despite its dismal record, the Gates Foundation-sponsored Alliance for a Green Revolution in Africa (AGRA) announced a new five-year strategy in September after rebranding itself by dropping ‘Green Revolution’ from its name.

Rebranding, not reform
Instead of learning from experience and changing its approach accordingly, AGRA’s new strategy promises more of the same. Ignoring evidence, criticisms and civil society pleas and demands, the Gates Foundation has committed another $200 million to its new five-year plan, bringing its total contribution to around $900 million.

Timothy A. WiseMore than two-thirds of AGRA’s funding has come from Gates, with African governments providing much more – as much as a billion dollars yearly – in subsidies for Green Revolution seeds and fertilizers.

Stung by criticism of its poor results, AGRA delayed announcing its new strategy by a year, while its chief executive shepherded the controversial UN Food Systems Summit of 2021. Following this, AGRA has been using more UN Sustainable Development Goals rhetoric.

Hence, AGRA’s new slogan – ‘Sustainably Growing Africa’s Food Systems’. Likewise, the new plan claims to “lay the foundation for a sustainable food systems-led inclusive agricultural transformation”. But beyond such lip service, there is little evidence of any meaningful commitment to sustainable agriculture in the $550 million plan for 2023–27.

Despite heavy government subsidies, AGRA promotion of commercial seeds and fertilizers for just a few cereal crops failed to significantly increase productivity, incomes or even food security. But instead of addressing past shortcomings, the new plan still relies heavily on more of the same despite its failure to “catalyze” a productivity revolution among African farmers.

Jomo Kwame SundaramThe supposedly new strategy dashes any hopes that AGRA or the Gates Foundation would acknowledge the harmful social and environmental effects of Green Revolutions in India, Africa and elsewhere. AGRA offered no explanation for why it dropped ‘Green Revolution’ from its name.

The name change suggests the 16-year-old AGRA wants to dissociate itself from past failures, but without acknowledging its own flawed approach. Recently, much higher fertilizer prices – following sanctions against Russia and Belarus after the Ukraine invasion – have worsened the lot of farmers relying on AGRA recommended inputs.

It is time to change course, with policies promoting ecological farming by reducing reliance on synthetic fertilizers as appropriate. But despite its new slogan, AGRA’s new strategy intends otherwise.

Last month, the Alliance for Food Sovereignty in Africa rejected the strategy and name change as “cosmetic”, “an admission of failure” of the Green Revolution project, and “a cynical distraction” from the urgent need to change course.

Productivity gains and losses
Despite spending well over a billion dollars, AGRA’s productivity gains have been modest, and only for a few more heavily subsidized crops such as maize and rice. And from 2015 to 2020, cereal yields have not risen at all.

Meanwhile, traditional food crop production has declined under AGRA, with millet falling over a fifth. Yields actually also fell for cassava, groundnuts and root crops such as sweet potato. Across a basket of staple crops, yields rose only 18% in 12 years.

Farmer incomes have not risen, especially after increased production costs are taken into account. As for halving hunger, which Gates and AGRA originally promised, the number of ‘severely undernourished’ people in AGRA’s 13 focus countries increased by 31%!

A donor-commissioned evaluation confirmed many adverse farmer outcomes. It found the minority of farmers who benefited were mainly better-off men, not smallholder women the programme was ostensibly meant for.

That did not deter the Gates Foundation from committing more to AGRA despite its dismal track record, failed strategy, and poor monitoring to track progress. Judging by the new five-year plan, we can expect even less accountability.

The new plan does not even set measurable goals for yields, incomes or food security. As the saying goes, what you don’t measure you don’t value. Apparently, AGRA does not value agricultural productivity, even though it is still at the core of the organization’s strategy.

Last month, the Rockefeller Foundation, AGRA’s other founding donor and a leader of the first Green Revolution from the 1950s, announced a reduction in its grant to AGRA and a decisive step back from the Green Revolution approach.

Its grant to AGRA supports school feeding initiatives and “alternatives to fossil-fuel derived fertilisers and pesticides through the promotion of regenerative agricultural practices such as cultivation of nitrogen-fixing beans”.

Business in charge
AGRA’s new strategy is built on a series of “business lines”, e.g., the “sustainable farming business line” will coordinate with the “Seed Systems business line” to sell inputs. Private Village Based Advisors are meant to provide training and planting advice in this privatized, commercial reincarnation of the government or quasi-government extension services of an earlier era.

The UN Food and Agriculture Organization successfully promoted peer-learning of agro-ecological practices via Farmer Field Schools after successfully field-testing them. This came about after research showed ‘brown hoppers’ thrived in Asian rice farms after Green Revolution pesticides eliminated the insect’s natural predators.

China lost a fifth of its 2007-08 paddy harvest to the pest, triggering a price spike in the thinly traded world rice market. Seeking help from the International Rice Research Institute, located in the Philippines, a Chinese delegation found its Entomology Department had lost most of its former capacity due to under-funding.

Earlier international agricultural research collaboration associated with the first Green Revolution – especially in wheat, maize and rice – seems to have collapsed, surrendering to corporate and philanthropic interests. This bitter experience encouraged China to step up its agronomic research efforts with a greater agro-ecological emphasis.

Empty promises?
The new strategy promises “AGRA will promote increased crop diversification at the farm level”. But its advisers cum salespeople have a vested interest in selling their wares, rather than good local seeds which do not require repeat purchases every planting season.

AGRA is not strengthening resilience by promoting agroecology or reducing farmer reliance on costly inputs such as fossil fuel fertilizers and other, often toxic, agrochemicals. Despite many proven African agroecological initiatives, support for them remains modest.

The new strategy stresses irrigation, key to most other Green Revolutions, but conspicuously absent from Africa’s Green Revolution. But the plan is deafeningly silent on how fiscally strapped governments are to provide such crucial infrastructure, especially in the face of growing water, fiscal and debt stress, worsened by global warming.

It is often said stupidity is doing the same thing over and over again, expecting different results. Perhaps this is due to the technophile conceit that some favoured innovation is superior to everything else, including scientific knowledge, processes and agro-ecological solutions.

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